Class 12 Business Administration Notes · GSEB
Meaning and Characteristics of Organisation
Meaning and Characteristics of Organisation — the formal administrative structure built to implement plans. GSEB Class 12 Commerce notes covering the brain–body metaphor, Bernard and Allen definitions, and nine exam-ready characteristics.
Last updated: 27 Oct 2026
Notes
From Plan to Structure
Notes — the key lines
Planning sets the goal; organising builds the structure that implements it. Two or more people need division of work, authority and responsibility, and delegation. The metaphor: planning is the brain, co-ordination the soul, organisation the body.
- What the structure carries — the success of any unit depends on proper division of work, distribution of authority and responsibility, and delegation of authority among employees.
- Methodical application — the objectives fixed when the organising process begins are applied methodically, so organising is inevitable for every unit working to a goal.
Trap — The metaphor is a hook, not an answer — never write only “organisation is the body”.
Meaning and Definitions
Notes — the key lines
Organising is the structure formed to enable delegation of authority and responsibility. Bernard: the activity conducted by the co-operation and co-ordination of two or more people. Allen: identifying and classifying work, defining and delegating responsibility and authority, and establishing relationships.
The structure formed in order to enable delegation of authority and responsibility towards the people actively engaged for a common goal is organising.
The activity conducted by the co-operation of two or more people and their co-ordination is called Organizing.
Organizing is the process of identifying and classifying the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.
- Efficient organisation is inevitable for effective administration and the management process.
- Most problems of management arise from ineffective organisation, so the unit misses its goal within the specific time.
- Capable organising saves resources, time, energy and money through their optimum use, and avoids problems in business activities.
- Organising is basically a group concept: where two or more people work together, the structure for effective work accomplishment is organising — also known as arrangement.
- Authority and responsibility are delegated to the group gathered for a common objective, and inter-relationships are established among them.
- The human body is the example: different parts, different functions, one co-ordinated whole.
Trap — Do not quote only Allen — the two-authority answer needs Bernard as well.
Nine Characteristics of Organising
Notes — the key lines
Nine characteristics, one idea: organising is goal oriented and planning based. It delegates authority and responsibility, centres on the human element, and stays flexible. It establishes inter-relationships, builds in monitoring and control, and gives a controlled administrative structure.
Organising is created to achieve the goal of the business unit. The main objective, departmental objectives and sub-goals, and the individual goals of employees are all determined. Organisation is the structure that co-ordinates business goals, departmental goals and employee goals — hence a goal oriented activity.
Organisation is made on the basis of planning and the objectives determined by planning. Proper planning must come first, because the structure of any unit is based on its future implementation of the plan.
People working towards a common goal are allotted work as per their capabilities and skills, and each person is informed about their authority. Organising is the structure that establishes the relationship of authority and responsibility among people.
Human beings sit at the centre of organising. The success of any organisation depends on the people working in it, so effective human relations are necessary for an effective organisational structure.
Once the organisation is formed, suitable changes can be made according to changing circumstances or situations — major changes in the business environment, technological advancement or new discoveries.
Organising establishes inter-relationships among work, positions and divisions. It clarifies the relationship of one work with another work, and one division with other divisions.
Monitoring, control and co-ordination are basic requirements of any organisation. Organising provides for monitoring whether each employee performs the task as per the powers and responsibilities assigned.
Many people work together for the accomplishment of a common goal. Organising provides the effective structure through which that group activity is conducted properly.
Organising is a particular kind of controlled administrative structure. Rules and controls are required to define relationships in any business unit, and organising forms them.
Trap — “Planning based” does not mean organising is planning — the structure is built for the plan, not the plan itself.
Key Takeaways
- Organising exists to achieve business, departmental, and individual goals together.
- It rests on planning, because the structure is built for the future plan.
- Authority and responsibility are matched to people’s capabilities.
- Human beings sit at the centre of every organisational choice.
- A sound structure can flex when the environment, technology, or discoveries change.
- Monitoring and control are built into the structure, not added afterwards.
Exam Questions
Exam Questions
Attempt first; then open the answer.